SOURCE: The TCW Group, Inc.

The TCW Group, Inc.

October 28, 2009 03:17 ET

TCW Energy Agrees to Acquire 50% Interest in Portfolio of Operating Wind Farms in the U.K. From Centrica, PLC

LOS ANGELES, CA--(Marketwire - October 28, 2009) - Funds and accounts managed by the Energy & Infrastructure Group of TCW ("TCW") today announced the agreed purchase of a 50 percent equity stake in GLID Wind Farms Topco, Ltd ("GLID"), a wholly owned subsidiary of Centrica, PLC (LSE: CNA) for approximately £84.4 million. GLID is the owner of 220 megawatts of producing wind assets in the U.K. consisting of Lynn (97 MW) and Inner Dowsing (97 MW), both offshore wind farms in Lincolnshire, and the Glens of Foudland wind farm (26 MW) onshore in Aberdeenshire.

TCW will enter into a joint venture agreement with Centrica that will govern their on-going relationship as co-owners of these wind farms and the governance of GLID. GLID, in turn, will also enter into a 15-year Power Purchase Agreement (PPA) with British Gas Trading Ltd, a wholly owned subsidiary of Centrica, and will raise approximately £343 million of non-recourse project finance debt from a consortium of fourteen banks.

TCW will make the investment in GLID through two of the investment funds it manages: the $2.6 billion TCW Energy Fund XIV and the EUR 354 million European Clean Energy Fund. The transaction will form part of TCW's growing portfolio of equity and mezzanine investments in the European energy and energy-related infrastructure markets. The equity transaction is expected to be completed before year-end and is conditional on receipt of European Community Merger Regulation (ECMR) approvals.

"This transaction represents a unique opportunity to partner with one of the premier integrated utilities in Europe and benefit from their demonstrated market presence and technical expertise. With substantial wind energy assets already in operation, this company provides an attractive platform for growth and will immediately contribute toward meeting the U.K.'s targets for renewable energy," said R. Blair Thomas, Chief Executive of TCW's Energy and Infrastructure business.

According to Sam Laidlaw, Chief Executive of Centrica, "The refinancing and equity sale of part of our existing wind portfolio underlines the quality of the operational assets and creates a structure for recycling Centrica's capital and mobilising third party funds efficiently. This is a milestone in our renewables strategy and we look forward to working together with TCW who bring significant global expertise in energy investments."

About TCW

Founded in 1971, The TCW Group, Inc. develops and manages a broad range of innovative, value-added investment products that strive to enhance and protect clients' wealth. The firm has approximately $100 billion in assets under management. TCW clients include many of the largest corporate and public pension plans, financial institutions, endowments and foundations in the U.S., as well as a substantial number of foreign investors and high net worth individuals. TCW is a subsidiary of Société Générale Asset Management, which has approximately $400 billion under management.

TCW's Energy & Infrastructure Group is one of the leading providers of institutional capital to the energy and energy-related infrastructure sectors globally with assets under management of approximately $6 billion and capital invested in more than 250 energy projects and companies in 32 countries. Other recent investments in European renewables include a portfolio of solar thermal assets with a large developer in Spain and several biogas facilities in Germany with Recent investments in the U.K. include Severn Power, an 825 MW gas-fired power plant in Wales, and CH4 Energy, an upstream natural gas producer in the Southern North Sea. The Group has a 27-year track record in the industry and operates from offices in Los Angeles, Houston, New York, London and Sydney.

Contact Information

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    The TCW Group, Inc.
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